Bankruptcy Assistance for African Americans

 There are millions of people who struggle to keep their bills paid each month in America. This is especially true when the amount of debt they have continues to climb, but their salary is not keeping pace. Many people feel like they are drowning in debt and need a way out. The good news is that there is bankruptcy assistance for African Americans and others who need help.

Bankruptcy is a legal process that helps people who can no longer keep up with paying their bills. If they have accumulated more debt than they can keep up with or they have lost their job, or they are making less money than they used to, then they may need help keeping afloat. The government has created the bankruptcy option to help people who are drowning in debt.

Bankruptcy Assistance Basics

Every year in the U.S. there are many people who file for bankruptcy, which is a legal procedure. Some years, there are over 700,000 people who file, while most other years there are at least half that amount. Bankruptcies often rise when there are increases in interest rates or if the economy is not doing well. The more people struggle to earn a good living and keep up with their bills, the more likely they are to consider bankruptcy.

There are three types of bankruptcy, which include Chapter 7, 11, and 13. Chapter 11 bankruptcy is for businesses. It allows them to stay open, while they try to better manage the debt that they have accumulated. For many businesses it is the last resort in trying to save a failing company and if it doesn’t work they may end up closing their doors.

Chapters 7 and 13 are for personal debt. This is the type of bankruptcy that citizens of the country will apply for if they are struggling with their personal debt, including their car payments, credit card payments, etc. There are some important factors to know about each of these, so you can better decide which one is the right chapter for your needs.

Types of Personal Bankruptcy Explained

Chapter 7 bankruptcy liquidates all of the debt that can be removed from your name. The process takes 4-6 months for it to be completed, and your income has to be below the guidelines required. This type will typically help you remove such debt as credit cards. There are some things that cannot be removed or included in any type of bankruptcy, such as student loan debt. This type of bankruptcy may show up on your credit report for up to 10 years.

When you declare a Chapter 7 bankruptcy and are approved for it legally, your approved debts will be wiped out. You will not have to pay on them ever again. If you have secured debt, such as a car, you will be able have the debt removed if you give up the secured item.

Chapter 13 bankruptcy is a reorganization plan. This type typically helps people get on a repayment plan to creditors, which helps them better manage the situation. If your credit card company, for example, wants $500 per month, this type of bankruptcy may make it to where you only have to pay $200 per month. This type may stay on your credit report for up to seven years.

Getting Bankruptcy Assistance

For African Americans and others who are drowning in debt and need help, bankruptcy may be a good option to consider. It is important to note that you will need to get assistance to file your bankruptcy. It is not a legal process that people can typically handle on their own.

If you want to go with a local resource you can look for bankruptcy attorneys in your area. Most will offer a free consultation, which will give you an opportunity to meet with them to discuss yours situation, so you can decide if you want to file for bankruptcy and if that attorney is the right one to work with.

Any place that you hire for bankruptcy assistance is going to charge you a fee for their service. This fee will depend on the place you are hiring, as well as the chapter you are filing for. It can range from $300 and up to as much as $1,000. While this may seem like a burden or a lot to come up with, it could end up saving you a lot of money in the long run if you are able to be approved for a bankruptcy, which can some of your debt removed or help you get more comfortable payment terms.

Programs Offering Bankruptcy Assistance

Everyone has to file for bankruptcy where they live in the country. It would go through your local legal system. Therefore, you have to find a local resource to help you file for bankruptcy. You should be able to find lawyers in your area who can help you with this. If you cannot, then call your state bar office and inquire about bankruptcy attorneys in your area. If you cannot afford an attorney they may also be able to help you find a pro bono, or free of charge, attorney that will help you.

Here are some resources that can further provide you with assistance regarding filing for bankruptcy:

Debt.org – This organization helps people with filing their bankruptcy, and they can answer the questions you may have about your specific situation. They offer bankruptcy filings, debt settlement, debt consolidation, student loan consolidation, and more. They can help you determine which option is going to be ideal for your situation. To get more information, click here.

United States Courts – This government website offers in-depth information about bankruptcy and how to apply for it. They provide information about how to find an attorney to hire for filing for bankruptcy. To get more information, click here.

Legal Zoom – If you are not sure if you should file for bankruptcy or not, this company be able to help. They provide details to help you decide if it is time to file. To get more information, click here.

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